Sappi (OTCMKTS:SPPJY) Shares Up 8.6% - Here's What Happened

Key Points

• Sappi Ltd. shares rose 8.6% on Friday, reaching a trading price of $1.39, despite a significant decline in trading volume.
• Analysts have given Sappi a consensus rating of "Sell," with Zacks Research recently upgrading the stock to a "strong sell" rating.
• The company reported a loss of ($0.04) earnings per share for its latest quarter, falling short of analysts' expectations of $0.03.

Sappi Ltd. (OTCMKTS:SPPJY - Get Free Report) shares rose 8.6% during mid-day trading on Friday . The company traded as high as $1.39 and last traded at $1.39. Approximately 1,750 shares changed hands during mid-day trading, a decline of 70% from the average daily volume of 5,811 shares. The stock had previously closed at $1.28.

Analyst Upgrades and Downgrades

Separately, Zacks Research upgraded shares of Sappi to a "strong sell" rating in a research report on Friday, August 8th. One research analyst has rated the stock with a Sell rating, Based on data from MarketBeat, Sappi presently has a consensus rating of "Sell".

Sappi Trading Up 8.6%

The stock has a market capitalization of $778.26 million, a P/E ratio of 8.18 and a beta of 0.87. The stock's fifty day moving average price is $1.52 and its 200 day moving average price is $1.73. The company has a debt-to-equity ratio of 0.63, a current ratio of 1.24 and a quick ratio of 0.62.

Sappi (OTCMKTS:SPPJY - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The basic materials company reported ($0.04) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.03 by ($0.07). The firm had revenue of $1.32 billion during the quarter, compared to analysts' expectations of $1.35 billion. Sappi had a net margin of 1.75% and a return on equity of 6.12%.

About Sappi

Sappi Limited, together with its subsidiaries, engages in the provision of materials made from woodfiber-based renewable resources in Europe, North America, and South Africa. The company manufacture and sells dissolving pulp, and wood and paper pulp; graphic papers, coated and uncoated papers, and casting and release papers; and packaging and specialty papers, including packaging and specialty papers, including flexible packaging papers, label papers, functional paper packaging products, containerboards, paperboards, silicone base papers, and dye sublimation papers.

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